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Pharmaceutical firm Cipla Ltd has entered into an agreement with Biopharm SPA to form a joint venture company in Algeria to manufacture and market respiratory products, the company said on Friday.
In a BSE filing, Cipla said: "A binding term sheet has been entered into with the company's existing partner, Biopharm SPA, for establishing a joint venture company in Algeria."
"The JV company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria," it added.
Under the agreement, Cipla's wholly owned subsidiary, Cipla (EU) Ltd, will hold a 40 per cent stake in the JV company, while the remainder will be held by a Biopharm-led Algerian consortium.
Cipla said the JV company was expected to make an investment of up to $15 million in the construction of a manufacturing facility.
"Cipla (EU) Ltd's initial investment in cash in the JV company is expected to be $6 million," the company said.
The transaction was subject to the execution of a definitive agreement and applicable approvals, the company added.
Shares of Cipla on Friday traded at Rs 669 apiece, up one per cent from their previous close on the BSE.
